Current · Source: Reserve Bank of India · RBI/2013-14/561 · issued 10 Apr 2014 · ~1 min read
Quick answerRBI has extended the existing all-in-cost ceiling for External Commercial Borrowings (ECB) until June 30, 2014. The ceiling, set in March 2012, remains unchanged. AD Category-I banks must inform customers. No other ECB policy changes.
The rule, in the simplest words
Banks must inform customers about the unchanged all-in-cost ceiling for External Commercial Borrowings (ECB) until June 30, 2014.
AD Category-I banks must ensure all ECB transactions comply with the unchanged all-in-cost limits.
How it plays out — a real example
As a forex & trade-finance officer in Indore, Rohan must inform his customers that the all-in-cost ceiling for ECB will continue to be applicable until June 30, 2014. He must also ensure that all ECB transactions comply with the unchanged all-in-cost limits as per the March 2012 circular. Rohan's customers can now plan their borrowings with certainty until mid-2014, but he will need to monitor RBI announcements for any review after that date.
What changed
The all-in-cost ceiling for ECB, originally specified in a March 2012 circular, was set to expire. RBI has now decided to continue the same ceiling until June 30, 2014, after which it will be reviewed again. No other aspects of ECB policy have been altered.
What it means for you
Banks and borrowers can continue using the existing all-in-cost limits for ECB without any immediate change, providing stability for ongoing and planned borrowings. The extension gives lenders and corporates certainty until mid-2014, but they should watch for a potential review after that date. No new compliance or reporting requirements are introduced.
What you must do
Inform customers and constituents about the continued applicability of the existing all-in-cost ceiling until June 30, 2014.
Ensure all ECB transactions comply with the unchanged all-in-cost limits as per the March 2012 circular.
Monitor RBI announcements for any review after June 30, 2014, to adjust lending practices accordingly.
Who it affects
AD Category-I banks, Borrowers using External Commercial Borrowings, Corporate treasuries and finance teams
❓ Common questions
What is the all-in-cost ceiling for ECB that remains unchanged?
The ceiling is the same as specified in the March 30, 2012 circular. The circular does not provide the specific rate, but it refers to that earlier directive. Banks should refer to that circular for exact figures.
Does this circular change any other ECB rules?
No. All other aspects of ECB policy remain unchanged. Only the all-in-cost ceiling has been extended until June 30, 2014.
What should AD Category-I banks do now?
Banks must bring the circular's contents to the notice of their constituents and customers. They should continue to apply the existing all-in-cost ceiling until further notice.
📜 Read the original circular — full text as issued by RBI
RBI/2013-14/561
A.P. (DIR Series) Circular No.121
April 10, 2014
To
All Category – I Authorised Dealer Banks
Madam / Sir,
External Commercial Borrowing (ECB) Policy – Review of all-in-cost ceiling
Attention of Authorised Dealer Category - I (AD Category - I) banks is invited to A.P. (DIR Series) Circular no. 58 dated September 30, 2013 relating to the all-in-cost ceiling for ECB.
2. On a review, it has been decided that the all-in-cost ceiling as specified under paragraph 2 of A.P. (DIR Series) Circular No. 99 dated March 30, 2012 will continue to be applicable till June 30, 2014 and is subject to review thereafter. All other aspects of ECB policy remain unchanged.
3. AD Category-I banks may bring the contents of this circular to the notice of their constituents and customers concerned.
4. The directions contained in this circular have been issued under sections 10 (4) and 11 (1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.
Yours faithfully
(Rudra Narayan Kar)
Chief General Manager-In-Charge
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/561 · issued 10 Apr 2014. The plain-English explanation above is BankPulse’s own independent summary.
Example: if you are a Compliance officer at a bank this circular applies to (AD Category-I banks, Borrowers using External Commercial Borrowings, Corporate treasuries and finance teams), your first concrete step on “ECB All-in-Cost Ceiling Extended Till June 2014” is: “Inform customers and constituents about the continued applicability of the existing all-in-cost ceiling until June 30, 2014.” (RBI issued this 10 Apr 2014).
Circular: RBI/2013-14/561 -- ECB All-in-Cost Ceiling Extended Till June 2014
Issued: 10 Apr 2014
Action required: Inform customers and constituents about the continued applicability of the existing all-in-cost ceiling until June 30, 2014.
Action required: Ensure all ECB transactions comply with the unchanged all-in-cost limits as per the March 2012 circular.
Action required: Monitor RBI announcements for any review after June 30, 2014, to adjust lending practices accordingly.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=8833&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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